U.S. equities closed mostly higher on Tuesday (Jan 27): the Dow Jones declined -0.83%, while the S&P 500 gained +0.41% and the Nasdaq rose +0.91%. Wall Street ended mixed, with the S&P 500 hitting a new intraday record high amid a rally in large-cap technology stocks, as investors awaited earnings releases from major tech companies and the Federal Reserve’s interest rate decision scheduled for Wednesday. The U.S. 10-year Treasury yield rose +0.74% (+3.1 bps) to 4.25%, while the U.S. Dollar Index weakened -1.82% to 95.78.

 

Commodity markets were broadly higher on Tuesday (Jan 27): WTI crude oil prices climbed +2.63% to USD 62.45/barrel, while Brent crude advanced +3.02% to USD 67.57/barrel. Coal prices declined -0.91% to USD 109.00/ton, CPO rose +0.83% to MYR 4,260/ton, and gold prices strengthened +3.42% to USD 5,180.16/oz.

 

Asian markets closed higher on Tuesday (Jan 27): the Hang Seng gained +1.35%, the Nikkei rose +0.85%, and the Shanghai Composite advanced +0.18%. The Jakarta Composite Index (IHSG) edged up +0.05% to 8,980.2, with total foreign net selling of IDR 1,614.4 billion; consisting of foreign net selling of IDR 1,653.0 billion in the regular market and foreign net buying of IDR 38.6 billion in the negotiated market. The largest foreign net selling in the regular market was recorded in BBCA (IDR 1,110.9 billion), ANTM (IDR 316.9 billion), and BMRI (IDR 171.8 billion), while the largest foreign net buying was seen in BREN (IDR 128.1 billion), MDKA (IDR 95.1 billion), and BRMS (IDR 71.7 billion). The top gainers were DSSA, GOTO, and TLKM, while the top laggards were ASII, BBCA, and BMRI.

 

This morning, the Kospi advanced +1.28%, while the Nikkei slipped -0.86%. We expect the IHSG to move higher today amid positive sentiment across regional markets and commodities.